Open Lending Operating Margin vs. EBITDA
Considering the key profitability indicators obtained from Open Lending's historical financial statements, Open Lending Corp may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Open Lending's ability to earn profits and add value for shareholders.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.
For Open Lending profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Open Lending to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Open Lending Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Open Lending's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Open Lending Corp over time as well as its relative position and ranking within its peers.
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Is Diversified Capital Markets space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Open Lending. If investors know Open will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Open Lending listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Open Lending Corp is measured differently than its book value, which is the value of Open that is recorded on the company's balance sheet. Investors also form their own opinion of Open Lending's value that differs from its market value or its book value, called intrinsic value, which is Open Lending's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Open Lending's market value can be influenced by many factors that don't directly affect Open Lending's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Open Lending's value and its price as these two are different measures arrived at by different means. Investors typically determine if Open Lending is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Open Lending's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Open Lending Corp EBITDA vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Open Lending's current stock value. Our valuation model uses many indicators to compare Open Lending value to that of its competitors to determine the firm's financial worth. Open Lending Corp is rated below average in operating margin category among its peers. It is rated below average in ebitda category among its peers totaling about 519,471,698 of EBITDA per Operating Margin. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Open Lending's earnings, one of the primary drivers of an investment's value.Open EBITDA vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Open Lending |
| = | 0.08 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Open Lending |
| = | 41.3 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Open EBITDA Comparison
Open Lending is currently under evaluation in ebitda category among its peers.
Open Lending Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Open Lending, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Open Lending will eventually generate negative long term returns. The profitability progress is the general direction of Open Lending's change in net profit over the period of time. It can combine multiple indicators of Open Lending, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Open Lending Corporation provides lending enablement and risk analytics solutions to credit unions, regional banks, and non-bank auto finance companies and captive finance companies of original equipment manufacturers in the United States. Open Lending Corporation was founded in 2000 and is based in Austin, Texas. Open Lending operates under Credit Services classification in the United States and is traded on NASDAQ Exchange. It employs 132 people.
Open Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Open Lending. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Open Lending position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Open Lending's important profitability drivers and their relationship over time.
Learn to be your own money manager
Our tools can tell you how much better you can do entering a position in Open Lending without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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Use Investing Themes to Complement your Open Lending position
In addition to having Open Lending in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Banking
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banking theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Banking Theme or any other thematic opportunities.
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Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Tools for Open Stock
When running Open Lending's price analysis, check to measure Open Lending's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Open Lending is operating at the current time. Most of Open Lending's value examination focuses on studying past and present price action to predict the probability of Open Lending's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Open Lending's price. Additionally, you may evaluate how the addition of Open Lending to your portfolios can decrease your overall portfolio volatility.
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